Reis economist addresses housing correction.Disagreement among economic experts when forecasting the health of both the national and apartment industry's economy arises partly because of differences of opinion concerning the housing market correction Market correction A relatively short-term drop in stock market prices, generally viewed as bringing overpriced stocks back to a level closer to companies' actual values. , according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Sam Chandan Ph.D., Chief Economist The Chief Economist is a single position job class having primary responsibility for the development, coordination, and production of economic and financial analysis. It is distinguished from the other economist positions by the broader scope of responsibility encompassing the & Senior Vice President Reis Inc. Chandan spoke in mid-January during a panel presentation at National Multi Housing Council's Apartment Strategies meeting in Phoenix. As for the overall conditions and forecast, Chandan said to take national apartment trends only as context because there is much greater variation in outcomes across metropolitan areas and submarkets now than there was just a year ago. "There is disagreement among economists about the general trajectory Trajectory The curve described by a body moving through space, as of a meteor through the atmosphere, a planet around the Sun, a projectile fired from a gun, or a rocket in flight. of the economy because we've been getting so much potentially conflicting data-mortgage applications are up, for example, while inventories of homes for sale are growing." For investors dealing with an improbable baseline of information, Chandan said, "While many economists had expected an increase in long-term mortgage rates to trigger the housing slowdown, single-family and condo markets are cooling while rates have remained low. It comes down to determining where people want to put their money; right now, households are still biased in favor of ownership. The plateau in prices--and, in some cases, price declines--means that some small degree of affordability is being conceded back to buyers." Chandan forecasted that gains in fundamentals will slow in 2007 as the supply leech leech, predacious or parasitic annelid worm of the class Hirudinea, characterized by a cylindrical or slightly flattened body with suckers at either end for attaching to prey. from condo conversions Generally stated, a condo conversion is a process of entitling an income property or other lands currently held under one title to convert from sole ownership of the entire property (which often already is a multi unit property) into individual for sale units. reverses and demand for apartments remains muted compared to historical levels. "The South Florida markets will take the brunt brunt n. 1. The main impact or force, as of an attack. 2. The main burden: bore the brunt of the household chores. of the slowdown given its large shadow stock of condos-for-rent, re-conversions and the potential for selective repurposing of condo projects that will ultimately come to market as competitive multifamily housing." |
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